Articles

From a females perspective divorce is a time when many women can lose access to valuable pension benefits held in the name of their former husband without realising the significance and value of these benefits.  Indeed in many cases the value of pension benefits can be greater than the value of the matrimonial home or follow it as a very close second.

Historically many lawyers omitted to consider the value of pension benefits but now this is not the case.

In one or two cases the husband’s pension benefits are less than those of his wife.

Regardless of the position it is of paramount importance that any party takes expert independent financial advice regarding pension benefits.  Parties can either be recommended by their lawyer to an adviser knowledgeable in the subject of pensions and divorce or seek out such an adviser through their own sources either by recommendation or the web.

Pensions and divorce is a complex subject as is the process to transfer funds from one party to the other so expert advice is vital.  Pension benefits need to be accurately valued and the implications of these conveyed to either the party paying away or receiving.

For the party in receipt of benefits they then need to take expert advice as to how to invest the benefits received and in many cases will actually require to be educated on what has suddenly come into their ownership to cover the benefits, workings, terms and conditions.

Where the benefits are in the form of either Money Purchase or Final Salary Pensions advice on either should be taken.

Directors of The Financial Management Group, www.tfmg.co.uk, have many years experience in advising on all aspects of pensions and divorce, valuing said benefits and providing suitable comment and investment advice.